Occasionally, warning flares of the type contained in most automobile emergency kits fail to ignite. A consumer advocacy group is to investigate a claim against a manufacturer of flares brought by a person who claims that the proportion of defective flares is much higher than the value of 0.1 claimed by the manufacturer. A large number of flares will be tested and the results used to test the claim. If there is evidence to support the claim, charges of false advertising will be filed against the manufacturer. In this context, describe Type I and Type II errors, and discuss the consequences of each.
The Type I error will be concluding that the proportion of defective flares is not greater than 0.1 when it is. The consequence of this is consumers will have to suffer because consumers will surely get defective flares.
The Type II error will be concluding that the proportion of defective flares is greater than 0.1 when it is not. The consequence of this is that the manufacturer will have to suffer because their flares will become useless and the charges of false advertising will be filed against them hence, they will have to support the advertisement in court.
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